Apparently, we’re supposed to be miffed that the S&P 500 Index didn’t actually hit a new all-time high. At least, not on an inflation-adjusted basis…

We need stocks to rally about another 25% before we can make such a boast.

Oh, how “inconvenient!” We’ve already shown that history points to this bull market lasting longer.

So shoot me now and spare me the misery.

Talk About Stimulation

Want to know how the economy is doing? Forget about tracking consumer spending, manufacturing activity, or unemployment claims.

Just be on the lookout for pregnant women.

You might think that’s inappropriate, but according to Hedgeye Risk Management, when more women aged 20 to 34 find jobs – in other words, when the economy is strengthening – more babies are born in the United States.

Conversely, when the economy hits the skids, the baby making stops.

Naturally, there’s a nine-month lag between more jobs and more babies. (If I have to explain why, we’re in trouble.)

So what does the latest data reveal? That Marvin Gaye’s “Let’s Get It On” is getting a lot of playtime.

After the Great Recession caused the largest drop-off in births in 40 years, Americans are certainly getting busy again.

Of course, more babies mean more Americans need bigger houses. And that plays right into our thesis of a prolonged real estate recovery. (In case you missed it, you can get up to speed to here, here and here.)

And given the manufacturing renaissance that’s underway in America (thanks to a glut of cheap natural gas), Mexico is certain to benefit because of its close proximity.

Or, as Morgan Stanley’s (MS) Nikolaj Lippman and Luis Arcentales put it, “A sustained manufacturing revival in the United States… will create a new competitor for the [emerging markets] world, but a partner for Mexico. And the benefits could be felt across the Mexican economy for years, perhaps even decades.”

Sounds like an opportunity to me. And the easiest (and cheapest) way to play it would be the iShares MSCI Mexico Capped ETF (EWW).

That’s it for this week. Before you go, though, let us know what you think of this weekly column – or any of our recent work at Wall Street Daily – by sending an email to feedback@wallstreetdaily.com or leaving a comment on our website.

Comments (4)

I don’t believe this “Baby Boom” takes into account that with government handouts the way they have been, and the direction they are apparently heading, it has become all too common for women having babies being the “bread-winners” for the family. A woman can have a baby, get a check, housing, food stamps, free medical, etc. To top that off, (let’s use the Grandmother for this scenario), the Grandmother can call DFCS and claim the Mother can’t support all her kids, and applies to be a foster parent, receiving up to $15,000/month/child, around $%144,000/year. It has become an all too common “racket”.

Thank you for your sentiment. When everything in our lives ( in this case, the economy) is a giant manipulation, I am too afraid to participate in the system to allow the system to continue. Getting sucked into the market using these false data to artificially boost the economy by participating, only holds up a sinking ship that has a huge gash in its side.